Future Update to RCUH’s Micro-Purchase Threshold

Effective August 1, 2018, RCUH’s micro-purchase threshold (“MPT”) will increase from $3,500 to $10,000 for all purchases, with the exception of purchases made using federal contract funds.

This change is being made pursuant to a memo released by the Office of Management and Budget, which granted an exception to allow the application of an MPT of $10,000 for federal grant and cooperative agreement funds. Based on this allowance, RCUH will be utilizing an MPT of $10,000 for federal grant and cooperative agreement funds, as well as non-federal funds. For federal contract funds, the existing $3,500 threshold will remain in place until the $10,000 threshold is adopted by the Federal Acquisition Regulation (“FAR”).

Micro-purchases (i.e., purchases at and below the MPT) are made using the most advantageous price, terms, and other factors affecting the total cost; the approval of the Fiscal Administrator signifies that a determination has been made that the price is fair and reasonable. Documentation of the record of competition and/or method of selection (e.g., obtaining competitive quotes, sole source and/or cost price justification, etc.), is not required for micro-purchases.

Revisions to the MPT will be reflected in Policy 2.103 Request for Quotation, as well as other policies and forms that reference the MPT. An announcement with links to the new policies and forms will be posted prior to the August 1, 2018 implementation date.

Questions may be directed to Erin Yoda, RCUH Procurement and Disbursing Manager, at 808-956-3969 or eyoda@rcuh.com.